I've explored the idea of using super cheap servos to build a robot arm/tentacle to pick cherry-tomatoes and it seems the only reason you'd want to use location encoders is in tasks that require high precision in an open-loop system (the robot is blind to its environment but has info about his own body). To me it seems you can get rid of this requirement if you allow the robot to sense its environment using cheap, 800x600 cameras with depth estimation ML algos and get away with the accumulated imprecision of sequential servos by coupling to each servo a high accuracy/small angle servo (just modify the servo's gear box). As for the gripper mechanism, you don't need fancy force sensors, just use a kirigami effector [1]. See also mobile-aloha [2].

[1] https://www.youtube.com/watch?v=UerxNyu147g [2] https://mobile-aloha.github.io/